Gold and Oil Markets Report – 17 July 2017

Crude Oil

WTI Crude prices moved strongly last week and closed at USD46 /barrel on Friday. Weakening Dollar is a catalyst for recovering Crude while traders also do short-covering for profits. This week, we foresee the support will hold well at USD45 /barrel and test USD48 /barrel region. Though the expected range might be small, the bullish sentiment to stay in this upper range will be a prelude to recovery higher in July/August month.

Gold

Gold prices bounced off USD1204 /oz and closed above USD1225 /oz on Friday. We foresee the trend will stay buoyant in coming week and probably recover at USD1250 /oz to regain investors’ confidence. Support will emerge at USD1215 /oz and exhibit a range trading from USD1215 – USD1250 /oz while demand should gradually summon in market.

Silver

Silver prices regained good recovery at USD16.00 /oz on Friday. The market has probably completed the recent dip and should change the sentiment to gradual higher demand in coming weeks. Technically, we reckon an initial range will take place from USD15.50 – USD16.00 /oz but there is a tendency to pierce above the resistance and climb higher to USD16.50 /oz area.

Crude Palm Oil

Crude Palm Oil Futures (FCPO) on Bursa Malaysia Derivatives traded in small range as roller over month moves to October contract. Market has been supported by some demand in energy and oil market despite Ringgit is inactive. September delivery settled at RM2566 /MT while Monday will begin trading in October contract. We foresee support will emerge at RM2530 /MT and trend may drive higher if the global energy prices recovery firm. Target may reach RM2650 /MT if the downside support is well protected.

This post is contributed by OPF Guest Bloggers, DAR Wong and Chong HC

DAR Wong and Chong HC are the market strategists in APSRI on CPO markets. DAR has 26 years of trading and hedging experiences while HC trades for 7 years and now coaches institutional customers. They can be reached at www.traderpromaster.com

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